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Audit Documentation Test Bank

This document contains a test with 10 multiple choice questions about auditing concepts such as evidential matter, working papers, and audit procedures. It instructs the test-taker to choose a letter for each answer and write using short bond paper with capital letters only. Answers with erasures or tampering will be considered incorrect. The test contains questions about the purpose and content of working papers, characteristics of competent evidential matter, and definitions relating to auditing terms.

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Jade
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587 views1 page

Audit Documentation Test Bank

This document contains a test with 10 multiple choice questions about auditing concepts such as evidential matter, working papers, and audit procedures. It instructs the test-taker to choose a letter for each answer and write using short bond paper with capital letters only. Answers with erasures or tampering will be considered incorrect. The test contains questions about the purpose and content of working papers, characteristics of competent evidential matter, and definitions relating to auditing terms.

Uploaded by

Jade
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Name: ______________________________________ Date: __________ Section: ________Score: _______

Instructions: Print using short bond paper. Write the letter of


your choice before each number. Use capital letters only.
Answer/s with erasure/tampering will be considered incorrect. _____8. Accounting records least likely include
a. The records of initial entries and supporting records.
_____1. If working papers are to have the characteristics that will b. The general and subsidiary ledgers.
ensure that they achieve their primary purposes, which of the c. Work sheets and spreadsheets supporting cost
following is the most important? allocations.
a. Working papers must be of standard format and standard d. Comparable data about competitors for benchmarking.
content.
b. Working papers must be properly indexed and cross- _____9. Which of the following statements relating to the
referenced to the draft audit report. competence of evidential matter is always true?
c. Working papers must provide sufficient, competent, and a. Evidential matter gathered by an auditor from outside an
useful information to support the audit report. enterprise is reliable.
d. Working papers must be arranged in logical order b. Accounting data developed under satisfactory conditions
following the audit program sequence. of internal control are more relevant than data
developed under unsatisfactory internal control conditions.
_____2. Choose the best illustration of objective audit evidence c. Oral representations made by management are not valid
from the following evidence.
a. The paid invoice file containing invoices matched with d. Evidence gathered by auditors must be both valid and
receiving reports and purchase orders. relevant to be considered competent.
b. Management's assertion that payment procedures require
matching of invoice with receiving report and purchase _____10. The main advantage of properly indexed working
order. papers is to
c. Clerical staff assurances that management policy a. Reduce the size of the file.
regarding payment of invoices--matching of invoice with b. Better organize the working papers.
receiving report and purchase order--is always followed. c. Allow division of labor within the audit team.
d. The treasurer's statement of not remembering any d. Facilitate the efficient use of audit staff.
exceptions in which an invoice was submitted for
payment that was not accompanied by a matching receiving
report and purchase order. Test II.

_____3. The sufficiency and appropriateness of evidential matter ____________________1. Identify- Information used by the
ultimately is based on the auditor in arriving at the conclusions on which the auditor’s
a. availability of corroborating data opinion is based.
b. Philippine Standards on Auditing ____________________2. Identify- The record of audit
c. pertinence of evidence. procedures performed, relevant audit evidence obtained, and
d. judgment of the auditor. conclusions the auditor reached.
____________________3. Identify- One or more folders or
_____4. An auditor’s working papers will ordinarily be least likely other storage media, in physical or electronic form, containing
to include documentation showing how the the records that comprise the audit documentation for a specific
a. Client’s schedules were prepared. engagement
b. Engagement was planned.
c. Understanding of the client’s internal control was obtained ____________________4.True or False- Inspection of tangible
and control risk was assessed. assets ordinarily provide reliable audit evidence with respect to
d. Unusual matters were resolved. the entity’s rights and obligations or the valuation of the assets.
____________________5. True or False- The relevance of
_____5. Which of the following most likely affects the auditor’s information to be used as audit evidence may be affected by the
judgment about the quantity, type and content of working direction of testing.
papers?
a. The content of the client’s representation letter
b. The nature and condition of the client’s accounting and
internal control systems
c. The timing of substantive tests completed prior to the “Believe in yourself and all that you are. Know that
period-end there is something inside you that is greater than any
d. The usefulness of the working papers. obstacle. – Christian D. Larson”
_____6. The permanent file of the auditor’s working papers
generally would not include
a. working trial balance
b. bond indenture agreement
c. lease agreement
d. flowchart of internal control structure

_____7. Working papers which contain information relating


primarily to the audit of a single period.
a. Current audit files c. Financial reporting files
b. Permanent audit files d. Correspondence files

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